Share-Based Compensation

6 Months Ended

Jul. 03, 2011

Share-Based Compensation

Share-Based Compensation

12. Share-Based Compensation

The Company has granted options, restricted stock and restricted stock units subject to vesting requirements under its 2006 Equity Incentive Plan. Vesting of most grants is over two to five years. The restricted stock units are subject to performance criteria in addition to time vesting requirements. Following is a summary of options, restricted stock and restricted stock units which have been granted under the Company's plan:

	Stock Options
	Number of Options Outstanding			Weighted Average Exercise Price
Balance at December 28, 2008		1,708,842		$	17.17
Granted		91,158			12.12
Forfeited or expired		(56,978	)		19.19
Balance at January 3, 2010		1,743,022			16.84
Granted		390,750			11.03
Forfeited or expired		(1,335,567	)		17.96
Balance at January 2, 2011		798,205			12.11
Granted		63,000			14.40
Forfeited or expired		(2,357	)		11.19
Exercised		(1,500	)		10.00
Balance at July 3, 2011		857,348			12.29
Exercisable at July 3, 2011		175,078		$	14.08

	Restricted Stock
	Number of Shares			Grant-Date Average Fair Value Per Share
Nonvested at December 28, 2008		119,130		$	17.05
Granted		85,800			12.22
Vested		(35,815	)		14.83
Forfeited		(6,000	)		22.23
Nonvested at January 3, 2010		163,115			14.80
Granted		219,318			9.64
Vested		(65,536	)		13.86
Forfeited		(18,978	)		10.60
Nonvested at January 2, 2011		297,919			11.48
Granted		84,164			13.66
Vested		(70,694	)		12.16
Forfeited		(4,754	)		9.53
Nonvested at July 3, 2011		306,635		$	11.95
	Restricted Stock Units
	Number of Units			Grant-Date Average Fair Value Per Unit
Nonvested at January 3, 2010		—		$	—
Granted		121,000			8.75
Vested		—			—
Forfeited		(10,000	)		8.75
Nonvested at January 2, 2011		111,000			8.75
Granted		206,000			13.59
Vested		—			—
Forfeited		(9,500	)		11.51
Nonvested at July 3, 2011		307,500			11.91
Remain subject to performance criteria		200,500		$	13.59

During the second quarter of 2011, we granted 42,000 options to purchase stock at an exercise price equal to the closing price of the related common stock on the date the options were granted. These options had an aggregate fair value of $0.3 million, which will be amortized to expense over the option's requisite service periods. During the second quarter of 2011, we granted 9,433 shares of restricted stock with an aggregate fair value of $0.1 million, which will be amortized to expense over the requisite service period. In addition, we granted 12,000 restricted stock units with an aggregate fair value of $0.2 million during the second quarter of 2011, which will be amortized to expense over the requisite service period. These restricted stock units are subject to performance criteria based on 2011 results, in addition to time vesting.

We recognized non-cash stock compensation expense of $0.9 million and $1.1 million during the three months ended July 4, 2010 and July 3, 2011, respectively, and $1.6 million and $2.0 million during the six months ended July 4, 2010 and July 3, 2011, respectively, which is included in general and administrative expense.